Three more states obtain authorization in the STF to compensate losses with ICMS ceiling

In a new defeat for the federal government, the Federal Supreme Court granted an injunction allowing three other states to compensate for the revenue losses caused by the law that established a ceiling for ICMS rates on fuel.

Minister Gilmar Mendes’ decision was granted on Friday night (19), in response to requests from Acre, Minas Gerais and Rio Grande do Norte.

The Supreme Court, by decision of Minister Alexandre de Moraes, at the end of July, had already allowed São Paulo and Piauí to compensate for losses through discounts on installments of the states’ debts with the Union. Alagoas and Maranhão also obtained preliminary injunctions to the same effect.

Minister Gilmar Mendes’ three decisions allow states to compensate for revenue losses starting this month.

In June this year, President Jair Bolsonaro (PL) sanctioned the complementary law that established a ceiling of 17% and 18% for fuel, transport, electricity and communications.

One of the articles of the new legislation, mentioned in the minister’s decision, provides for a trigger for compensation, when the losses with collection were greater than 5% – in relation to the previous year. Gilmar Mendes also determined that the compensation should not consider any moratorium charge and prohibits the Union from registering these states in the registers of defaulters.

The law that established the ICMS ceiling for these services, which are now considered essential, has been the subject of a great deal of dispute between the government and the states since its passage in Congress.

In addition to lawsuits, states are pressing for Congress to quickly analyze vetoes by Jair Bolsonaro on points in the legislation that affected transfers to education.

On Thursday (18), representatives of the states met with the president of the Senate and Congress, Rodrigo Pacheco (PSD-MG), to address the issue.

Bolsonaro vetoed articles that determined that the Union would compensate for the loss of revenue to maintain minimum constitutional spending on education and health. The states estimate that the veto will withdraw around R$ 17 billion from state funds for these areas between July and December this year alone.